A company at the forefront of producing biofuels is set to relocate to North Hampshire should plans by approved by Test Valley Borough Council (TVBC).

Green Biofuels Limited is looking to relocate its head office from London to Nether Wallop as part of an overall trend of people and businesses heading to more rural areas – known as rural flight. If approved, the company will set up shop inside a former grain store south of the village.

The plans are currently being considered by TVBC, with a decision to be made in due course.

Biofuels are those produced from plants and other living organisms which are hoped to be one of the many ways of reducing global carbon dioxide emissions, as well as the production of other harmful products of fossil fuels.

While they can be used as a fuel in their own right, they are most commonly used as an additive to fuels such as diesel to reduce emissions of nitrous oxides and particulates. Production of some biofuels are controversial due to their impact on sensitive habitats such as tropical rainforests.

Green Biofuels Limited was established in 2013 as one of many companies seeking to develop new generations of biofuels. They produce fuel using recycled hydrogenated vegetable oil (HVO), which is obtained used cooking supplies and other waste oils, adding that “no virgin crops our used in our fuel”.

Green Biofuels says that its fuel GreenD+, “is the fuel of choice in diesel engines”, with tests carried out for the company stating it can reduce greenhouse gases “by up to 90 per cent”. It aims to capture around 10 per cent of the UK’s diesel market, with the fuel able to be used in unmodified engines.

With revenues of £27 million last year, the company wants to move to Test Valley after its employees have been working remotely. The former grain store at Berry Court Farm will be converted to have offices, meeting rooms and storage, as well as a testing area for research into the further development of biofuels.

Planning documents say that the company expects its traffic contribution to the area to be limited to staff and the occasional delivery, and soundproofing on the testing facility will prevent noise pollution elsewhere.

The company hopes to gain prior approval for its plans, which are allowed in principle by permitted development rights, from TVBC. The plans are currently under consideration, with officers to decide on the proposals at a later date.

Green Biofuels Limited was contacted for comment.